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Wednesday, 6 August 2014

Islamic banking: SBP to have Islamic finance sections

KARACHI: State Bank of Pakistan (SBP) Deputy Governor Saeed Ahmad said on Monday he prays for the replacement of conventional banking with Islamic banking in Pakistan.

Speaking at the launching ceremony of the Introductory Booklet on Islamic Mode of Financing at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the deputy governor said the central bank will soon have dedicated Islamic finance sections in all its departments.

“It is necessary to create awareness (about Islamic banking) among the masses,” he said, adding that its share in Pakistan’s overall banking industry can become as large as 30%.

Deposits of the Islamic banking industry stood at Rs872 billion at the end of the first quarter of 2014, up 23.8% from March 2013. The market share of Islamic banking industry’s deposits in the overall banking industry stood at 10.7% in March, up 1% from the market share of 9.7% one year ago.

“We are working with universities to develop courses for Islamic finance … it will produce a good work force for Islamic banking. Oman, Dubai and many other countries are already hiring Pakistani human resources (for their Islamic banking operations),” Ahmad added.

Noting that the SBP has played a key role in the promotion of Islamic banking in Pakistan, the deputy governor said the central bank has been one of few regulators in the world to issue a comprehensive framework for the development of this sector.